Global Carmaker Supply Chains Face Disruption Amid AI Data Center Surge
The auto sector is bracing for yet another potential supply chain disturbance, this time spurred by the rush to build data centers that train and develop artificial intelligence models.
A shortage of memory chips caused by the data center boom is already leading some industry participants to acknowledge price hikes exceeding 100%. UBS analysts, led by David Lesne, highlighted this concern in a report released on Tuesday. Disruptions could begin as early as the second quarter, he warned.
“We would not rule out some material downside risk” to global vehicle production, Lesne stated.
The specific type of semiconductors at issue are dynamic random-access memory chips, commonly referred to as DRAM. While automakers and their parts manufacturers rely on older, less-advanced memory chips compared to those used in AI servers and data centers, both sectors are affected by a constrained supply of silicon wafers.
With demand for higher-end memory chips soaring, the automotive industry must act swiftly to enhance its sourcing strategies. “Automakers face a narrowing window to redesign systems and lock in supply,” noted Matthew Beecham, a research analyst at S&P Global Mobility, in a report dated January 8. S&P analysts indicated that the top three manufacturers of DRAM chips—Samsung Electronics Co., SK Hynix Inc., and Micron Technology Inc.—are prioritizing the more lucrative data center segment over automotive applications.
Car manufacturers and suppliers that are more exposed to advanced driver-assistance systems and electronic components are at a higher risk, according to UBS analysts. They identified Visteon Corp. and Aumovio SE as particularly vulnerable among suppliers, while predicting greater downside for Tesla Inc. and Rivian Automotive Inc. compared to Ford Motor Co. or General Motors Co.
Broad-based semiconductor shortages previously cost carmakers millions of vehicles during the Covid-19 pandemic. More recently, manufacturers like Honda Motor Co. have had to halt production due to disruptions linked to Nexperia BV, a chipmaker that was taken from its Chinese owner by a Dutch court.
Copyright 2026 Bloomberg.
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The auto sector is bracing for yet another potential supply chain disturbance, this time spurred by the rush to build data centers that train and develop artificial intelligence models.
A shortage of memory chips caused by the data center boom is already leading some industry participants to acknowledge price hikes exceeding 100%. UBS analysts, led by David Lesne, highlighted this concern in a report released on Tuesday. Disruptions could begin as early as the second quarter, he warned.
“We would not rule out some material downside risk” to global vehicle production, Lesne stated.
The specific type of semiconductors at issue are dynamic random-access memory chips, commonly referred to as DRAM. While automakers and their parts manufacturers rely on older, less-advanced memory chips compared to those used in AI servers and data centers, both sectors are affected by a constrained supply of silicon wafers.
With demand for higher-end memory chips soaring, the automotive industry must act swiftly to enhance its sourcing strategies. “Automakers face a narrowing window to redesign systems and lock in supply,” noted Matthew Beecham, a research analyst at S&P Global Mobility, in a report dated January 8. S&P analysts indicated that the top three manufacturers of DRAM chips—Samsung Electronics Co., SK Hynix Inc., and Micron Technology Inc.—are prioritizing the more lucrative data center segment over automotive applications.
Car manufacturers and suppliers that are more exposed to advanced driver-assistance systems and electronic components are at a higher risk, according to UBS analysts. They identified Visteon Corp. and Aumovio SE as particularly vulnerable among suppliers, while predicting greater downside for Tesla Inc. and Rivian Automotive Inc. compared to Ford Motor Co. or General Motors Co.
Broad-based semiconductor shortages previously cost carmakers millions of vehicles during the Covid-19 pandemic. More recently, manufacturers like Honda Motor Co. have had to halt production due to disruptions linked to Nexperia BV, a chipmaker that was taken from its Chinese owner by a Dutch court.
Copyright 2026 Bloomberg.
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